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Since the last time you logged in our privacy statement has been updated.

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Since the last time you logged in our privacy statement has been updated.

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Legal entity capital requirements

Residence and tax system

A company is resident either if it has been established in accordance with Greek law, or its registered address or its place of effective management is in Greece. Resident companies are taxed on their worldwide income. Nonresident companies are taxed only on their Greek source income.

Compliance requirements for CIT purposes

Filing of annual income tax returns. Recording of entries in accounting books. Fiscal year is the calendar year or period ending on 30 June, unless majority foreign parent has different year end and opts to use this.

Tax rate

The standard corporate income tax rate is 29 percent

Withholding tax rates

On dividends paid to non-resident companies

A 15 percent dividend WHT applies on distributed profits. An exemption from dividend WHT is available if the EU Parent-Subsidiary Directive applies (based on the conditions mentioned below for inbound dividends) or could be reduced based on available double tax treaties. The EU Directive applies in relation to outbound dividends paid to EU entities if the following two conditions are met by the EU Parent Company:

Transfer duties

On the transfer of shares

On the transfer of land and buildings

VAT is imposed on the transfer of new buildings (for which construction licenses were issued or amended after January 1, 2006) at the rate of 24 percent, on condition that they are to be used for the first time by the purchaser.

Following this first transfer, every subsequent transfer is subject to real estate transfer tax at the rate of 3 percent. A local authority surcharge, equal to 3% of the transfer tax, is also levied. For legal entities, capital gains from the sale of real estate are taxed as business profits at the standard tax rate.

Stamp duties

No

Real estate taxes

The ownership of real estate is subject to the Unified Real Estate Ownership Tax (UREOT), which comprises a main tax and a supplementary tax. The main tax on buildings ranges from EUR 2 to EUR 13 per square meter depending on their location/tax zone, multiplied by certain coefficients depending on the building’s age, etc. The main tax for plots of land located within city limits or zoned areas ranges from EUR 0.0037 to EUR 11.25 per square meter depending on their location/tax zone. The main tax for plots of land located outside city limits or zoned areas is EUR 0.001 per square meter, multiplied by certain coefficients depending on their use, whether they are irrigated, etc. The main tax is increased fivefold, if there is a building on the land. A supplementary tax is imposed on all real estate owned by legal entities at the rate of 0.55 percent of the objective tax value.

Controlled Foreign Company rules

Yes

Transfer pricing rules

General transfer pricing rules

Yes. Intragroup transactions (domestic and cross border) should follow the arm’s length principle in accordance with the OECD guidelines. Profit adjustments may result.

Documentation requirement?

Yes

Thin capitalization rules

Yes

General Anti-Avoidance rules (GAAR)

Yes

Specific AntiAvoidance rules/Anti Treaty Shopping Provisions

Business transactions/transformations etc. should be supported by a valid and solid business rationale to mitigate risk that the tax authorities consider that a transaction is being carried out for tax avoidance purposes. Transfer Pricing, Controlled Foreign Company and Thin capitalization rules are applicable. There are no Anti-Treaty Shopping provisions.

Advance Ruling system

Yes. Rulings can be obtained, but are not binding although they are generally adhered to by tax authorities. They are not subject to the payment of a fee.

IP / R&D incentives

Yes

Other incentives

Some investment incentives are available.

VAT

The standard rate is 24 percent. There are reduced rates of 13 percent and 6 percent for certain goods/services.

In 2017, the standard rate for certain remote Greek islands in the Aegean sea is 17 percent.